MIDWEST BRIEFS.

CBOT profit slides on higher expenses

July 29, 2003|By From Tribune news services.

The Chicago Board of Trade said Monday that second-quarter profit fell 22 percent, as technology spending rose and it gave members a share of earnings from electronic trading for the first time. Net income fell to $10.6 million from $13.5 million a year earlier. The figure includes $12.8 million in costs related to members' interest in electronic trading. The exchange conducts computer trading through a unit called Ceres Trading Limited Partnership, in which it has a 10 percent general interest. The Board of Trade is switching its electronic trading system to one owned by Euronext.liffe from one developed with Frankfurt-based Eurex AG, which plans to compete with the CBOT in the United States next year. Ceres will be dissolved at the end of the year as part of the exchange's planned conversion to a for-profit company. Expenses rose 22 percent, to $65.1 million, as spending on technology increased. Operating income before taxes and the costs related to electronic trading rose 37 percent, to $30.8 million. Revenue increased 26 percent, to $95.9 million, driven by an increase in transaction fees.